Monday, January 17

Brent oil cuts bullish streak and falls with attention to OPEC + next steps

Brent Crude Futures fell 75 cents, or 1%, to $ 76.10 a barrel, after they rose 2.1% in the previous session. The benchmark is aimed at accumulating a weekly advance of around 3.5%.

Markets in the United States are closed on Friday for the Christmas holidays.

Oil prices have rebounded this week as fears about the impact of the Omicron variant on the world economy subsided, and early data suggest that it causes milder disease.

“The comeback because ‘omicron is moderate’ could well continue until January, but I think reality will bite us in February, as the end of the Fed’s reduction of stimulus nears”said OANDA analyst Jeffrey Halley.

The US Federal Reserve said last week that it would end bond purchases in March. It applied to deal with the economic consequences of the pandemic, paving the way for three interest rate hikes, which most Fed officials now believe will be necessary next year.

The Organization of the Petroleum Exporting Countries and its allies, including Russia, a group known as OPEC +, will meet on January 4 to decide whether to go ahead with a production increase of 400,000 barrels per day (bpd) in February.

Russia believes it is oil prices unlikely to change significantly next year and that demand will recover to pre-pandemic levels only by the end of 2022, Deputy Prime Minister Alexander Novak said on Friday.

Ómicron continued to spread around the world on Thursday and health experts warned that the battle against the variant of COVID-19 is far from over, despite the fact that two pharmacists said their vaccines provided protection against it and the signs that it carries a lower risk of hospitalization.

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